Hayes, in the matter of Parcelpoint Pty Ltd (Administrator Appointed)

Parcelpoint Pty Ltd is a start-up company that operates a network of parcel delivery and pickup locations across Australia. The company, incorporated on 2 September 2016, employs 21 staff members and has various creditors, including secured creditors, convertible noteholders, agents, contractors, suppliers, and statutory creditors. On 25 August 2022, an Administrator was appointed by the company's directors. The first meeting of creditors was held on 6 September 2022, and the second meeting was scheduled for 30 September 2022. The Administrator applied for an extension of the convening period under s 439A(6) of the Corporations Act 2001 (Cth) to allow additional time to assess offers to purchase the company's assets and negotiate potential counter-offers. The Administrator also sought to consider a possible Deed of Company Arrangement. The court was required to decide whether granting the extension would be in the best interests of the creditors and whether the extension would cause material prejudice to those affected by the proposed moratorium.

The court considered the principles outlined in previous cases, which suggest that courts tend to grant extensions if an evidentiary case for the extension is properly prepared, there is no evidence of material prejudice to those affected by the administration, and the estimate of time has a reasonable basis. The Administrator provided evidence that two offers to purchase the company's business and/or assets had been received, and a proposal for a Deed of Company Arrangement was being considered. The Administrator also submitted that the extension would not prejudice the creditors, as funds had been quarantined to pay the priority unsecured creditors in full and the non-priority unsecured creditors were unlikely to receive any return in a liquidation scenario. The court concluded that an extension of time for the convening of the second meeting of creditors was appropriate, as it would likely benefit the creditors and allow the Administrator to explore all possible avenues for the sale, restructure, or recapitalisation of the company.

The court granted the application for an extension of the convening period under s 439A(6) of the Corporations Act 2001 (Cth), extending the convening period by 56 days until 18 November 2022. The court also made an order under s 447A of the Act allowing the meeting of creditors to be held at any time during or within five business days of the extended convening period. The court ordered that certain confidential material not be disclosed or made available for inspection by any person until the completion of any sales process concerning the company's business or assets. The Administrator was also directed to take reasonable steps to notify the company's creditors of the court's orders. The court further ordered that any person who could demonstrate sufficient interest (including any creditor of the company) could apply to the court on three business days' notice to the Administrator for an order modifying or discharging any order made in the application. The costs and expenses of the application were ordered to be costs in the administration of the company.